Question about Office Equipment & Supplies

# Gross profit margin is usually depends on what?

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## Related Questions:

### Looking for 1000 hit movies of all time

Take a look at IMDb or search top 1000 grossing movies
you may also need to adjust for inflation for the early ones due to rpi at time of release
also it depends on what definition you use for success most money collected over cost ( how much profit was made )or how many awards collected

Nov 24, 2016 | Computers & Internet

### I am trying to figure out how to use the Cost, Sell, and margin buttons on this calculator...any insight?

I haven't used a calculator with these functions, so let's do a test.

I'm guessing is it for doing basic accounting. The equation is Sales - Costs = Gross Profit and maybe Gross Profit / Sales = Gross Margin.

If we enter 100 in sell, 40 in cost, does the margin come out to be 60 or 0.6? If it comes out to 60, the margin is the Gross Profit. If it comes out to 0.6, then the margin is Gross Margin.

Good luck,

Paul

May 12, 2016 | Office Equipment & Supplies

### If the unit selling price is \$2.50 and the unit cost is \$1.00, what action is needed to maintain the gross margin percentage when unit cost increases .25

Hi,

Let's set up a table to see it (sorry, I'm a visual learner;)

Selling Price \$2.50 x
Unit Cost \$1.00 \$1.25
-------
Gross Profit \$1.50 x - 1.25

Gross Margin 60% 60%

Time for some algebra;)

x - 1.25 0.6
---------- = -------
x 1

Now we can cross-multiply or multiply both sides by x to get rid of the fraction.

x - 1.25 = 0.6 x

Subtract 0.6x from both sides and add 1.25 to both sides to get the variables on one side and the constants on the other.

x - 0.6 x = 1.25
0.4x = 1.25

Divide both sides by 0.4 to get x by itself.

x= 1.25
------
0.4

x= 3.125

Good luck.

Paul

Feb 12, 2015 | Office Equipment & Supplies

### How to calculate

If you invest \$2000.00 for 25 years at 4% compound quarterly

Dec 10, 2013 | L-J-Holmes Free %Gross Profit Margin Calc

### Please can you give me a formula to calculate GP for a new product?

Does GP stand for Gross Profit? Sorry to ask but one could read it as Grand Prix, Genera Purpose (Jeep), etc.
If you mean gross profit, then it is defined as
gross profit = revenue - cost of goods sold.

Oct 01, 2013 | Office Equipment & Supplies

### What make the gross profit percentage increase

Gross profit =total revenue -cost of doing business
Gross profit percentage = Gross profit/(Total revenue.)*100%
To increase the gross profit percentage, you decrease the cost of doing business.
Costs= all you have to spend to be able to do business (merchandises, employees' pay, rent of facilities, electric bills, etc.)

Sep 29, 2013 | Office Equipment & Supplies

### Ibico 1232 desk calc. How do i calculate gp

Is this a trick question, were you sleeping in class, or did you forget how to use a search engine??

Gross Profit = Sales - CGS.
Gross Profit Margin = Gross Profit / Total Sales

Company A has sales of \$80,000 and a CGS of \$60,000. GP=\$20,000 and GPM = 25%

Carl

Oct 01, 2010 | Office Equipment & Supplies

### I must not understand what a margin is so could someone explain, the instructions give this example: If I purchase something for \$2000 and want to make a 20% profit I would need to sell it for \$2500 (2000...

Hi,
I think you should refer to you definitions. The 20% is called the markup. The profit margin is calculated with respect to the revenue. So you should divide the 400\$ by 2400\$ to get a net profit margin of 400/2400 =0.1667 or 16.67% (And we are not taking into account the taxes).

Margin = Markup /(price + Markup)
Markup = Margin* (Price +Markup)
Markup = Margin*Markup + Margin* Price
Markup*(1-Margin) =Margin*Price
Markup = Margin*Price/( 1-Margin)
For Price =2000, Margin =0.2 (that is 20%)
Markup = 0.2*2000(1-0.8) =0.2*2000/0.8
Markup = 2000*(0.2/0.8)= 2000*0.25 = 500

Thus to have a (net) profit margin of 20%, an item costing 2000\$ must be marked up by 500\$.

Try not to reason with numbers. Write the defining relation and use algebra to isolate for the variable you seek.

Hope it helps.
Thank you for using Fixya and for rating this solution.

Nov 30, 2009 | Canon P23-DH Calculator

### How do I use the Cost/Sell/Margin function on my Canon P100-DH 2 desktop printing calculator? Please for the love of god help me.

Cost/Sell / Margin can be very confusing it uses the following Account formulas (For Cost = Selling price - ( Selling price / Markup) For Sell = Selling Price =Cost / (1-Margin%))

It is not a pure percentage. Please respond back if you have any other questions.

Apr 22, 2008 | Office Equipment & Supplies

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